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5 reasons why you are not making a living from your trading

  • #41
  • May 4, 2020 2:15am May 4, 2020 2:15am
Quoting OutThere
There is only one reason: under-capitalization.
Undercapitalization a common problem, leads to excessive risk taking, over-trading, etc and that of course is a primary cause of failure.

You can't learn to trade if you don't stay in the game long enough. To stay in the game, you have to learn to manage risk (i.e., you have to learn not to lose money.) This point is brought up over and over and over again but few traders take it to heart. It's not exciting to not lose money. Everyone wants to dream about making lots of money.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #42
  • May 4, 2020 2:19am May 4, 2020 2:19am
Quoting The Fool
{quote} It's not exciting to not lose money. Everyone wants to dream about making lots of money.
Agree:

Quoting DavideCash
... You want emotions in your daily routines and you seek them in trading. Plus, you are not farming patience and detouchment.
  • #43
  • May 4, 2020 2:51am May 4, 2020 2:51am
I will keep in mind with these points that you shared. Thank you.
  • #44
  • May 4, 2020 7:30am May 4, 2020 7:30am
DavideCash, thanks for your thoughts and wisdom. Absolutely agree what you saying. I would also add that we, small retail traders are doomed to failure. Why? Because we are manipulated since we discovered activity of trading. Imagine that bunch of free indicators, rules, techniques, seminars, courses etc. given to us....to succeed...yeah right! Basically by absorbing and implementing everything given to us, we have freely accepted to be manipulated. Like sheep moving in certain direction, using very narrow path, and not being able to see a slaughter house round the corner.
Till certain extend, what is going on in retail trading I would compare with health industry...you know, doctors, advice's, seasonal hype of what is good and not good, and...eyes of big pharma above. Do they really want us healthy? Who the hell would buy medications and pay for treatments if everybody is healthy. But still they want us alive so we can continue our path.
Same with trading. Couple of nice trends corresponding with everything we were thought, and then slow tangle which leads to complete mess out of any logic and expectation.
So what would be solution? For good health, find your own way, detach yourself from hype, see what fits you and follow it. Very simple and inexpensive! And results will come!
Same in trading! Back to basics, simple charts and low key! And I would say, detach our self by zooming out! If our "trusted" indicator has parameter 10 or 14, place it on 200 or 400! Does not matter time frame! And all at sudden, we will be able to see that speedy highway with all its lanes and direction of movement. And being able to exit the road if any slaughter house ahead!
Thanks for attention!
  • #45
  • May 4, 2020 7:34am May 4, 2020 7:34am
Quoting Bondone
DavideCash, thanks for your thoughts and wisdom. Absolutely agree what you saying. I would also add that we, small retail traders are doomed to failure. Why? Because we are manipulated since we discovered activity of trading. Imagine that bunch of free indicators, rules, techniques, seminars, courses etc. given to us....to succeed...yeah right! Basically by absorbing and implementing everything given to us, we have freely accepted to be manipulated. Like sheep moving in certain direction, using very narrow path, and not being able to see a slaughter...


Agree. Expecially with the zoom out part, totally right. The arena of the M5 - M30 spikes (when the trader goes for 10 ten pips, by risking 100 pips) is always a carnage.
  • #46
  • May 4, 2020 2:46pm May 4, 2020 2:46pm
people don't making money because they listen to beginners who write things wrong like i saw here at that post.
last thing we need to hear is beginner who telling us patterns and technical don't work.
trading for 1 year or even 6 not making you professional to give advice!
so people have to stop reading and watching shits here or youtube
  • #47
  • May 4, 2020 11:30pm May 4, 2020 11:30pm
Quoting DavideCash
{quote} Thank you for the contribution to this discussion
Impressive! You have emotional control. That's a must have trait to win in this business as the trade will try to take a bite out of you every time you have a position on. I will follow as I like to learn.
Ecclesiastes 1:9
  • #48
  • Edited 5:08am May 5, 2020 2:16am | Edited 5:08am
Quoting JsCave
people don't making money because they listen to beginners who write things wrong like i saw here at that post. last thing we need to hear is beginner who telling us patterns and technical don't work. trading for 1 year or even 6 not making you professional to give advice! so people have to stop reading and watching shits here or youtube

Beginners????? Your use of the bold tells us to read your comment with more attention as it has a superior utility. We appreciate a lot.

Thanks

https://www.forexfactory.com/davidecash#acct.92
  • #49
  • Edited 5:11am May 5, 2020 2:16am | Edited 5:11am
Quoting newbegger
{quote} Impressive! You have emotional control. That's a must have trait to win in this business as the trade will try to take a bite out of you every time you have a position on. I will follow as I like to learn.

You guy are really a strong one

https://www.forexfactory.com/davidecash#acct.92
  • #50
  • May 9, 2020 4:24pm May 9, 2020 4:24pm
Quoting OutThere
{quote} If someone is trading 10K and has 50% dd, add 990000 to their balance and that dd becomes .5%. There is a certain so called successful trader on this forum that keeps posting only his positive trades and there are a lot of them. As for his negative trades, he doesn't show them or care because he claims to have such a big account that his dd is too little to care for. So, apparently, with a large account, you can easily make a lot of money for every day use trading FX. You and I may not know that because we don't have that large account and...
There is a certain so called successful trader on this forum that keeps posting only his positive trades and there are a lot of them.
Is the first letter of the name of this trader is "B"?
  • #51
  • May 9, 2020 6:29pm May 9, 2020 6:29pm
Quoting Lest
{quote} There is a certain so called successful trader on this forum that keeps posting only his positive trades and there are a lot of them. Is the first letter of the name of this trader is "B"?

Alright, I don't want to get into it too much. Not aiming to rekindle anything....but I said it, so I come clean.
Aussi and I had a bit of argument over his trading success that he happily posts about. At the end, I think we agreed to disagree.

His postings are positive and uplifting but some of them didn't pass my way of looking at things and my way is mine and not his. His style is his style and only he can express it the way he does. That's totally fair I think.

All good.
Mystery solved.

ps, he likes getting into arguments so, we both had fun.
  • #52
  • May 9, 2020 7:27pm May 9, 2020 7:27pm
This thread has been good to read.

Everyone should always ask do they have the skill to "distinguishing the fortunate charlatan from the genuine visionary" From Fooled buy Randomness - Nassam Nicholas Taleb
  • #53
  • May 9, 2020 8:29pm May 9, 2020 8:29pm
Quoting DavideCash
{quote} It is impossible to make money with technical instruments.
Marty 'pitbull' Schwartz says hi

don't know him, look him up...
  • #54
  • May 14, 2020 11:58am May 14, 2020 11:58am
Simply because the income from trading is highly unpredictable and very much dependent on how much you are putting in. If you don't have a basic income from a different source where would you get the funds to trade?
  • #55
  • Jul 23, 2020 8:05pm Jul 23, 2020 8:05pm
Quoting DavideCash
{quote} It is impossible to make money with technical instruments.
No offence, but you’re posting shit like this as if you’re the world’s number 1 trader, and linking a demo account? Lol. That’s all. All the lols.
  • #56
  • Jul 30, 2020 10:35am Jul 30, 2020 10:35am
Quoting intraflay
{quote} No offence, but you’re posting shit like this as if you’re the world’s number 1 trader, and linking a demo account? Lol. That’s all. All the lols.
With offense, it is not demo. Forum guys will update their detector... Everything is wrong with the Trade Explorer at the date. Stay tuned, they have to rediscover the update and the server.... and check it again.
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  • #57
  • Aug 12, 2020 3:13pm Aug 12, 2020 3:13pm
Quoting DavideCash
{quote} With offense, it is not demo. Forum guys will update their detector... Everything is wrong with the Trade Explorer at the date. Stay tuned, they have to rediscover the update and the server.... and check it again. {image}
Keep your knickers on boy. Cute 160k (demo) account you’ve got by the way. I’d see that amount of profit in a month as a bad month. Take care though mate and good luck with your trading.
  • #58
  • Sep 7, 2020 8:53pm Sep 7, 2020 8:53pm
Quoting intraflay
{quote} Keep your knickers on boy. Cute 160k (demo) account you’ve got by the way. I’d see that amount of profit in a month as a bad month. Take care though mate and good luck with your trading.
how you withdraw from demo
  • #59
  • Sep 10, 2020 10:25am Sep 10, 2020 10:25am
To make a living, long term, you need to be realistic about your yearly returns on capital. Too many traders don't follow sound portfolio risk management. They have a fairy tale belief that with $10K they can trade full time and make money. To make even 60K you would need to make 6x on your capital, not possible long term by any metric.

You should aim for 10-30% depending on your experience/sophistication level in a retail environment. Some years you might make more, maybe 50% or 100%, but generally long term 10-30% is realistic (net of fees).
To make $100K a year expect to be capitalized with $300K to $1MM.

Another is acceptable drawdowns that you can recover from. Max 10% drawdown is a good starting point. Preservation of capital is the goal.

Another reason is demo trading versus live trading. Demo performance will not translate into live trading. Or even a backtest of a strategy. If your win rate was 70% in demo/backtest, assume it drops by atleast 10% in live, to 60%. Combine that with slippage, errors, mistakes, and a 60% win rate will not be enough.

Finally, most people lose money in this game. Only 1 in 10 traders that passed the interview to be hired as a junior trader in the prop trading desk were successful beyond 2+ years.
  • #60
  • Sep 10, 2020 3:36pm Sep 10, 2020 3:36pm
Quoting Stinkbid
To make a living, long term, you need to be realistic about your yearly returns on capital. Too many traders don't follow sound portfolio risk management. They have a fairy tale belief that with $10K they can trade full time and make money. To make even 60K you would need to make 6x on your capital, not possible long term by any metric. You should aim for 10-30% depending on your experience/sophistication level in a retail environment. Some years you might make more, maybe 50% or 100%, but generally long term 10-30% is realistic (net of fees). To...
You are not completely right. As a small trader, you get more opportunities cause you dont move price.
When you see it, BET big.
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